REG - Air China Ld - Announcement on Impairment Provision

Air ChinaAnnouncement

29/08/2025 07:00

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RNS Number : 1764X  Air China Ld  29 August 2025

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the whole or any part of the contents of this announcement.

 

中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China
with limited liability)

(Stock Code: 00753)

 

ANNOUNCEMENT REGARDING PROVISION FOR IMPAIRMENT FOR THE HALF YEAR OF 2025

 

Air China Limited (the "Company") held the sixth meeting of the seventh
session of the board of directors (the "Board") on 28 August 2025, at which
the Board considered and approved the "Resolution on Provision for Impairment
for the Half Year of 2025".

 

1.     OVERVIEW OF THE PROVISION FOR IMPAIRMENT

 

In accordance with the Accounting Standards for Business Enterprises and the
requirements of the Company's relevant accounting policies and accounting
estimates, and in order to present an objective and fair view of the Company's
financial position and operating results for the half year of 2025, the
Company conducted an assessment of expected credit losses on the relevant
assets and performed impairment tests on assets having indications of
impairment. Based on the test results, the Company recognised a total of RMB91
million in provisions for various asset impairments for the half year of 2025,
with the specific details as follows:

 

Unit: RMB'000

                                  Provision made

                                  for the half year of 2025

 Item                                                         Remarks

 Provision for asset impairment   85,154                      Impairment provision for fixed assets
 Provision for credit impairment  5,563                       Impairment provisions made for accounts receivable, other receivables, other
                                                              debt investments, other current assets

                                                              and interbank deposits
 Total                            90,717                      -

 

 

2.     SPECIFIC DETAILS OF THE PROVISIONS FOR IMPAIRMENT

 

A.    Provision for Asset Impairment

 

In accordance with Accounting Standards for Business Enterprises No. 8 - Asset
Impairment, the Company conducted an impairment test on aircraft approaching
retirement and recognised a provision for fixed asset impairment in the amount
of RMB85 million for the shortfall between the assets' recoverable amount and
their carrying value.

 

B.    Provision for Credit Impairment

 

In accordance with Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments, the Company, based on
the expected credit losses, recognised impairment provisions in the amount of
RMB6 million for accounts receivable, other receivables, other debt
investments, other current assets and interbank deposits.

 

3.     IMPACT OF THE PROVISION FOR IMPAIRMENT ON THE COMPANY'S FINANCIAL POSITION

 

For the half year of 2025, the Company recognised a total of RMB91 million in
provisions for various asset impairments in its consolidated financial
statements. After considering the comprehensive impact of factors such as the
reversal of impairments during the year, loss before taxation in the Company's
consolidated financial statements increased by RMB87 million. The provisions
for impairment comply with the Accounting Standards for Business Enterprises
and the requirements of the Company's relevant accounting policies and
estimates, providing a true and objective reflection of the Company's
financial position and operating results for the half year of 2025 and
accurately represent the actual condition of the Company's assets.

 

By Order of the Board

Air China Limited

Xiao Feng

Company Secretary

 

Beijing, the PRC, 28 August 2025

 

As at the date of this announcement, the directors of the Company are Mr. Ma
Chongxian, Mr. Wang Mingyuan, Mr. Cui Xiaofeng, Mr. Patrick Healy, Mr. Xiao
Peng, Mr. Xu Niansha*, Mr. He Yun*, Ms. Winnie Tam Wan-chi* and Mr. Gao
Chunlei*.

 

*    Independent non-executive director of the Company

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